Talk:Market monetarism

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Too much jargon, what does this mean? - π Moderator 23:08, 22 December 2011 (UTC)

New Bank of England governor comments[edit]

removed from article:

However, central Central bankers have politely given it short shrift orat first ignored it thus far, then politely criticised it.

However, in December 2012, Mark Carney, current head of the Bank of Canada and soon to be Governor of the Bank of England, said something somewhat positive about it in a speech:

"Bank of Canada research shows that, under normal circumstances, the gains from better exploiting the expectations channel through a history-dependent framework are likely to be modest, and may be further diluted if key conditions are not met. Most notably, people must generally understand what the central bank is doing – an admittedly high bar.
"However, when policy rates are stuck at the zero lower bound, there could be a more favourable case for NGDP targeting. The exceptional nature of the situation, and the magnitude of the gaps involved, could make such a policy more credible and easier to understand."
However, this does not necessarily mean that Carney will implement it in the UK - or even be allowed to introduce it - as it is still considered a radical idea. Also, it does not even imply that he thinks it is the best option.

So, he supported it in a speech, but probably won't implement it. How helpful to the article is this? should it go in or not? SophieWilder 21:33, 14 December 2012 (UTC)

OK, yes, and he also criticised it (before going on to praise it). The thing is, I think the old text that says central bankers ignored it or gave it short shrift is now out of date. Also, this partial endorsement by Carney of NGDP targeting caused some excitement (e.g. at the Financial Times) and means that I guess it's viewed as slightly less of a fringe idea. So I think we should say something about it. Consider that a first draft!--Greenrd (talk) 23:39, 14 December 2012 (UTC)
Well all ideas start off on the fringe, then someone important goes with it, and gradually it seeps into the culture and gets accepted, even if it's crap. Anyway, it might be best here to have a brief summary of Carney's view, and a citation that links to his speech. SophieWilder 23:51, 14 December 2012 (UTC)